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BIS to Assess the Scope and Impact of Counterfeit Electronics on U.S. Supply Chain Integrity, Etc.

The Bureau of Industry and Security has issued a press release announcing that at the request of the U.S. Navy, Naval Air Systems Command (NAVAIR), it will assess the scope and impact of counterfeit electronics on U.S. supply chain integrity, defense readiness, and industrial capabilities. Military and related industrial supply chains are vulnerable to counterfeit electronics which, if undetected, can cause the malfunction and failure of defense systems and critical civilian infrastructure.

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According to Under Secretary of Commerce Mancuso, "the study will allow defense and industrial planners to better understand the scope and magnitude of counterfeit electronics and identify actionable solutions for policy makers."

The assessment will focus on:

Quantifying the number of reported counterfeits;

Documenting industry and government business practices, including procurement processes, that contribute to counterfeit product infiltration and;

Identifying best practices to prevent counterfeit electronics from penetrating critical supply chains.

Report to be Developed from Assessments of the Electronics Supply Chain

A publicly available report with recommendations will be developed from five separate assessments of buyers and sellers in the electronics supply chain, including original component manufacturers, circuit board assemblers, electronic component distributors and brokers and defense prime contractors and subcontractors. The assessments also will examine the Department of Defense depots, arsenals and procurement operations.

(See ITT's Online Archives or 07/14/08 and 07/15/08 news, 08071420 and 07081550 1, for BP summaries about DHS' National IPR Coordination Center.)

BIS contact - Matt Braud (202) 482-2721

BIS press release (dated 07/08/08) available at http://www.bis.doc.gov/news/2008/bis_press07082008.htm.